Partner - Risk Management
Dy. General Manager - Hr & Admn.


Hello All HR,
Our company is shoes manufactures and
some person working here as contract,
i mean they are getting Rs. 50/- for making
one pair if shoes as per the term of contract,
pls guide me should i cover these contract employee under ESIC & EPF,
Atul Tomer
28th May 2016 From India, Agra
1) All the employees including contract employee should cover in ESI & PF, Bonus Acts.
2) While entering into contract you are supposed to calculate including statutory benefits
you have to fix the rate to the contractor. The contractor is responsible to provide all
the benefits. If he fails to do so, the principle employer is responsible for the same.
28th May 2016 From India, Hyderabad
Are you talking of employees working through a contractor, Or are you talking of direct employees who are paid in piece rate basis
29th May 2016 From India, Mumbai
Sir... in our factory some employee is working through contractor.... And some employee are working piece Rate basic,
29th May 2016 From India, Basti
In that case the reply by PGR is correct. All the employees including piece rare must be covered in pf and ESIC.
In addition, please ensure that the workers are getting at least minimum wages, even if the number of shoes made is less.
30th May 2016 From India, Mumbai
In respect of contract it cannot confirm
Payment shall be exceed the minimum wages or below the minimum wages..
It is depends on shoes piece how much
The contractor has made & payment shall be made accordingly...
30th May 2016 From India, Gurgaon
It is the duty of the principal employer to ensure that each contract worker gets paid at least minimum wages.
You are required to be present during payment of wages (or scrutinise bank records of payment)
And you are liable for paying any difference.
Whether you are paying per piece, or whether contractor pays per piece, it does not matter. No contract worker can be paid less than minimum wages.
This is clearly provided for in the minimum wages act.
31st May 2016 From India, Mumbai
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